BUS 491-04Fall, 2004page 1
Required text:Thompson & Strickland, Crafting and Executing Strategy: the Quest for
Competitive Advantage, 14th ed., McGraw Hill- Irwin, 2005 [website:
Instructor website:
Username:gilinsky
Password:tba
Welcome to our Fall 2004 Strategic Management course!
My vision is to help you to generate world-class, cutting-edge business solutions. The overriding objective of this course is to provide the questions you need to ask to make the right decisions about the future of a business or non-profit organization. Strategic management entails generating choices to be made among competing alternatives to produce a competitive advantage and earn above-average returns.
Rapid technological change, mergers and acquisitions, increasing pressures for globalization, and changing local environments for businesses have heightened the urgency to ask the right questions about the future, such as:
- Which distinctive competencies should we be developing for our businesses?
- Where should we compete?
- How do we communicate our strategy to our stakeholders?
We will indeed be fortunate to have your collective wisdom as well as that of occasional guest speakers from the business community to help guide us through complex strategic issues.
Learning objectives. The basic objective of this course is to teach you how to think and act strategically. By successfully completing BUS 491, you will learn:
That there are interrelationships among the functional areas of an enterprise;
How to develop skills in decision-making and oral and written presentation;
How to analyze, formulate and implement strategies, especially the role of top management teams in performing these activities.
By the end of the course, you should be able to research and analyze thoroughly a company, its industry and its competitors and to recommend a well-supported strategy to your Board of Directors.
Course description. This course in business policy focuses on integrative, multifunctional approaches to the solution of organizational issues and problems. A practical perspective, rather than a merely theoretical one, is stressed via discussion of case studies. Why use a case-study approach? Three levels of learning take place:
1.We share the generalized insights of leading theoreticians;
2.We test the applicability and limits of these theories to specific case studies; and
3.You develop your own special amalgam of insights based upon empirical observations and inductive reasoning (from case analyses).
How are cases used in BUS 491?
•As discussion vehicles for probing the benefits and limits of certain approaches;
•To provide class members with opportunities to apply and test concepts and tools related to dimensions of management thought (e.g., marketing, accounting, finance);
•To help you to understand the nature of “better” answers, as well as the complexity of reaching solutions and implanting them in organizations.
What do you—as class member—need to do? First, understand what went on in that situation:
•What has changed?
•What are the key questions about the future that need to be answered?
•What further information is needed to answer those questions?
Major emphasis is placed on action and implementation, not just on analysis. Each case features a top management team (TMT) facing a specific set of issues and problems. So, during the course, you will have an opportunity to see a wide range of TMTs in action, and to think about their specific choices and actions as if you were the TMT in charge.
This course calls on you to integrate concepts of all other prerequisite business courses, i.e., bringing together and applying the learning from core courses to the analysis and solution of strategic management problems. The course is intended to enhance the following skills:
1.Your ability to decipher detail and to analyze information in order to identify and to diagnose the major problems and opportunities confronting business organizations;
2.Your ability to take a cross-functional, top management perspective in developing feasible overall strategies as well as specific problem solutions;
3.Your ability to decide from among alternative courses of action and to formulate feasible plans for their implementation;
4.Your ability to present a position and to defend it.
Presentation teams. You will be assigned to study groups consisting of four or five members, meeting regularly to discuss the cases and readings before they are discussed in class. The aim of these groups is to share and critique individual analyses, to enhance class participation, and to compete in the final case sequence in November and December. Consider giving your team a name! Each evening, class time will be set aside for meetings; as the course progresses, you will find it necessary to spend several hours meeting outside of class. Students may not change teams without prior permission of the instructor.
Class participation. You should come prepared for class discussion of cases and supplemental readings, that is, with an outline or condensation of your case analysis, stating your perception of the underlying problem, some supportive data, and your recommended plan(s) of action. Bear in mind how difficult it is to assess your participation if you are absent from class! Attendance will be taken. Your class participation grade will be based on: 1) evidence of careful preparation of the cases and readings; 2) clarity and conciseness of your analysis; and 3) strong and convincing presentation of your findings and conclusions. Guidance for class participation is on p. 11.
Performance evaluation. Strategic issues seldom have clear-cut or singularly “right” solutions. This means that my evaluation of your performance will be based upon your managerial aptitude in problem diagnosis, generation of solutions, and communication of your position. I will be looking for demonstration of logical argumentation and consistency in your thought processes. Grades will be based on your performance in (a) oral discussion and argument (defense) of your ideas and (b) written communication. These will be weighted as follows:
Class preparation, attendance & participation [see Guidelines, pp. 9 & 11]....20%
Written case analysis [seven (7) issue briefs, see Course Calendar, pp. 4-8]...30%
Team presentations [12/8, see pp. 10, 14 & 15]...... 40%
Portfolio and reflection paper on research competencies [Due 12/15]...... 10%
Total...... 100%
Written case analyses. In order to create opportunities for us to explore more basic strategy issues and discuss methods of formulation and implementation that might otherwise have to be rushed, we will be using an electronic submission format for Issue Briefs. Submit individual case analyses as an MS Word file attachment to me at with both the subject line and file name reading <CaseAbbrev.mylastname.doc> (e.g., for “Robin Hood,” RH.Gilinsky.Doc, or for “Mendocino Brewing Company,” MBC.Gilinsky.doc). Use the following format:
1.Indicate your key case decision (what the GM needs to do now and why);
2.Support your decision by three (3) bullet points (≤1 line; dimensions of strategy theory that bear on the problem at hand; avoid judgment here)
3.Add any qualitative and/or quantitative comments/discussion which you feel is/are necessary to substantiate your analysis. (1-2 page limit)
4.Conclude by restating the central problem or issue and recommendation for action, stating lessons learned about strategic management, linking to readings that you have gleaned from the textbook.
Do not answer the study questions! Study questions (see Course Calendar, pp. 4-8) are intended to get you thinking about the issues in the case and to lead you through the process of analysis. Issue Briefs are due by 8:00 a.m. on class days for which Issue Briefs are assigned (see Course Calendar, below). Timely submission of case analyses will facilitate review of your work as well as a summary of the section’s qualitative/quantitative comments. You should always keep a hard copy of your Issue Brief for yourself and bring this to class. Your Issue Brief will serve as a personal document from which you could lead a class discussion. Acceptable Issue Briefs are given a “check,” which is roughly equivalent to a “B” grade. Unacceptable or late submissions will be assigned a “check minus,” roughly equivalent to a “C” grade. Issue Briefs not submitted on the date due for any reason will be assigned an “F” grade. An outstanding effort will receive a “check plus,” roughly equivalent to an “A” grade. Grading and coaching comments on your Issue Briefs will be returned to you as soon as possible.
Final presentation. The final presentation will consist of a competition among study group teams. The competition will involve case analysis and recommendations and be delivered as series of 10-minute oral presentations, followed by a 5-minute Q&A by the instructor and invited judges. Prepare handouts based on your visual aids; make at least five (5) copies to distribute to the judges. Your study group team is solely responsible for preparing its presentation(s). See guidelines on p. 10. The final presentation will involve the top two ranked teams after three “trial heats” in November and early December. To receive a grade higher than a “C” for the competition, your team must have amassed enough points to rank among the top four teams on December 8th. To receive an “A-“ or better for the competition, your team must rank as one of the top two teams on December 9th. See schedule and grading criteria on pp. 14 & 15.
Research portfolio and reflection component. The focus of the reflection component will be on describing (1) what you learned from the process of conducting research for case analysis; (2) what you learned about working in teams; (3) what you learned from the judges’ Q&A sessions during the case competition; and (4) your thoughts about the case competition as a learning device, that is, did it help you focus and/or motivate you more, did it make your research and the readings seem more relevant, how does the competition compare to other more traditional projects/presentations you have done. You should do a two-page, double-spaced write-up addressing these four issues, followed by your research logs, followed by a final bibliography of secondary research sources consulted during the process of developing your case presentations. Do not attach copies of articles, web pages, or other material to this report. Grade for this assignment: pass or fail. Please submit this final report to me via e-mail by 6:00 p.m. on December 15th. Please be in class on December 15th for the post-test (attendance will be taken!).
COURSE CALENDAR
Session 1 — Wednesday, August 25, 2004
Topic: Introduction
Read:Syllabus (handout)
Watch and listen:Intro lecture, Dead Poets' Society (video, in class)
Meet:Rick Robison, reference librarian
Check out:Sample one-page résumé (handout)
Do:Pre-test on information competency (handout)
Session 2 — Wednesday, September 1, 2004*
Topics: The Importance of Values for Formulating Strategy; Functional Tools for
Strategic Analysis; Framework for Strategic Analysis
Prepare:Core Purpose & Values Exercises (see pp. 12–13)
Discuss:Why values are important to me and to our organization.
Do:Manager’s Toolkit Exercise (in class); you will be assigned to study groups!
Prepare:Your résumé and class card (turn in both at the beginning of class)
T&S, Ch. 1 “What Is Strategy and Why Is It Important?”
Case: “Robin Hood” (T&S text, C-532) [RH]
*Issue brief due from each student
Participate and do:Class discussion; wrap-up mini-lecture on strategy
Don’t forget:*One-page résumé and class cards (with snapshot) are due!
Study questions for the RH case:
- What is the key decision that Robin needs to make now?
- What is he trying to accomplish?
- How would you rate his performance as leader/strategist? What is he doing well? not so well?
- Which options are available to him now?
- What do we learn from this case about strategy?
Session 3 — Wednesday, September 8, 2004
Topic: Assessing a Firm’s Financial Health (NOTE: no paper due for this case)
Prepare:“A Note on Assessing the Financial Health of the Firm” (web site)
Run the numbers for Kalari Burns, Inc. (see Exhibits 1 & 2)
Participate and do:Review financial ratio analysis & class discussion; return Robin Hood briefs.
Session 4 — Wednesday, September 15, 2004*
Topics: Crafting & Executing Strategy; Ethics and their Impact on Culture
Prepare:T&S, Chs. 2 & 13
Case: “Starbucks in 2004: Driving for Global Dominance” (T&S text, C-2)
*Issue brief due from each student
Meet in study groups to prepare “Starbucks in 2004”[SBUX] case.
Participate and do:Case discussion & role-play
Study questions for the SBUX case:
- What grade would you assign to Howard Schultz as a leader? Justify your answer.
- Evaluate Schultz’s leadership style. Was this a good fit for Starbucks’ situation? What did he do well? What should he have done differently?
- What will it take to achieve Starbucks’ goals of increasing revenues by 20% annually and net earnings by 20-25% annually for the next three-to-five years?
- What are Starbucks’ options as of January 2004? What action(s) would you recommend that Schultz take now? Prioritize! What are the consequences of your recommendation(s)?
Read ahead:“Mendocino Brewing Company—1996” (download from website or handout)
Michael Porter, “How Competitive Forces Shape Strategy” (website)
Watch and listen:Interview with Michael Porter, “The Charlie Rose Show,” April 30, 2004
Session 5 — Wednesday, September 22, 2004*
Topics: Evaluating the External Environment: Industry Forces
Prepare:Porter’s “How Competitive Forces Shape Strategy” (website)
T&S Ch. 3, “Analyzing a Company’s External Environment”
Case: “Mendocino Brewing Company—1996” (website)
*Issue brief due from each student
Participate and do:Study groups meet to prepare industry analyses for “Mendocino Brewing
Company” [MBC] case; case discussion
Study questions for the MBC case:
- How would you rate the attractiveness of the beer industry?
- Perform a Porter “5 Forces” (see T&S p. 79) analysis. What do these five forces reveal about the opportunities for profitability in the beer industry? In the microbrewing segment?
- What should be MBC’s strategy given its desired position in the industry?
- How should Laybourn and his team proceed?
Session 6 — Wednesday, September 29, 2004*
Topic: Internal Assessment; “SWOT” Analysis; Resources and Capabilities
Prepare:T&S, Ch. 4 “Analyzing a Company’s Resources and Competitive
Position”; Handout on Situation Analysis
Case:“Netflix” (T&S, C-33)
*Issue brief due from each student
Watch and listen:Study groups meet to prepare SWOT analyses for “Netflix” [NET] case.
Participate and do:Case discussion
Study questions for the NET case:
1.What grade would you assign to Reed Hastings as a strategist?
2.Perform a SWOT analysis for Netflix. Which capabilities and resources should it build on for the future? Which new resources or capabilities does it need now? That is, where is special attention needed for greater future success?
3.Should Hastings grow or sell his business?
4.How should Hastings proceed? Is your selected strategy consistent with his values? With Netflix’s values?
Session 7 — Wednesday, October 6, 2004
Topic: Preparing Information Competencies for Competitor Analysis
Read ahead:T&S, Chs. 5, 6 & 8, “Tailoring Strategy…”
Prepare:Puma AG [PUMA]
Participate & do:Library orientation with Rick Robison in Shultz 2050 – use this session to
learn all that you can about conducting library research and also about the
athletic footwear industry
Session 8 — Wednesday, October 13, 2004*
Topic: Entry Timing
Prepare:T&S, Chs. 8
Case: “Puma AG” (T&S, C-411)
*Issue brief due from each student
Participate and do:Class discussion & role-play
Study questions for the PUMA case:
1.Evaluate Puma’s position and entry timing into the athletic footwear industry. Should Jochen Zeitz be content with that position?
2.What are some strategies for an industry undergoing consolidation? Based on your analysis in the previous question, is Puma well-positioned to survive the shakeout? For example, are there pros and cons of establishing partnerships and alliances in the athletic footwear industry?
3.What are Puma’s rivals’ likely competitive moves? How should Puma be prepared to respond?
4.What should Zeitz do now?
Session 9 — Wednesday, October 20, 2004*
Topic: Generic Strategy; ; “Gilinsky Grill”
Prepare:T&S, Chs. 5 & 6
Case: “eBay: in a League by Itself” (T&S, C-292)
*Issue brief due from each student
Participate and do:Study groups meet to prepare “eBAy” case; ask me tough questions!
Study questions for the eBAY case:
- In which market or markets does eBay compete?
- Describe and evaluate eBay’s strategy. What’s strong? What needs improvement?
- How would you define the industry in which eBay competes? Do the traditional tools for industry analysis apply?
- Based on the above analyses, how would you advise Meg Whitman and her team to proceed? Generate and evaluate her long-range strategic alternatives against a stated set of goals and objectives. Discuss how this chosen alternative should be implemented.
Session 10 — Wednesday, October 27, 2004*
Topics: Globalization; Diversity; Diversification
Prepare:T&S, Chs. 7 & 9
Case: “Andrea Jung and Avon Products in 2003”
*Issue brief due from each student
Participate and do:Study groups meet to prepare “Andrea Jung and Avon Products in 2003”
[AVON] case presentations; ad-hoc team presentations & role-play
Study questions for the AVON case:
- What are the key drivers for success in the global cosmetics industry?
- Evaluate Avon’s resources and capabilities in terms of value, rareness, inimitability, and sustainability. What are Avon’s core competencies?
- How should Avon compete globally in the future? What criteria should be used to guide its future diversification efforts?
- How would you advise Andrea Jung to proceed? How do you know?
Session 11 — Wednesday, November 3, 2004*
Topics:Strategy, Ethics and Corporate Social Responsibility; Practicing Case
Presentations
Prepare:T&S, Ch. 10, “Strategy, Ethics, and Social Responsibility” and “A Note on
Corporate Social Responsibility” (website)
Watch:Video for Benziger Family Winery case
Case:Benziger Family Winery, (T&S, C-665)
*Issue brief OPTIONAL from each student (for extra credit)
Participate and do:Case discusssion; prepare practice case for case competition (handout)